Assumptions for Calculations

Assumptions

FCF Annual -Growth 15%

Discount Rate -8.0%

Shares -outstanding 2231

Debt- 16630

Cash-11709

The DCF can be used to estimate the value of future cash flows and the impact upon the current value of the stock price.As reported in Morningstar, Visa reported FCF of 11,995 (million) in 2018.To perform this calculation, we first calculate the Discounted Free Cash Flow using the model from Chapter 9 (figure 9.21).Using this information, we project the future cash flows based upon a fixed growth rate. In your initial response, critically analyze the assumptions, potential errors, and modifications you might make in your estimations for the valuation of Visa stock price using the provided MS Excel Module 5 Visa DCF.In